Fraudulent Debt

“In 1964,… the US had a total debt load (private and public) of $1 trillion. Today, the economy carries a debt load of $59 trillion. In 1964, annual US GDP was $656 billion. Let’s see… today it is about $17 trillion. Divide $17 trillion by $656 billion and we find that GDP has gone up 26 times – not even half as much as the debt.” (Debt load up 59x, GDP up 26x).

“Any credit in excess of actual savings is a fraud. It produces a fraudulent boom, which must be followed by a bust. Eventually, the phony credit must go back whence it came.” -Bill Bonner